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PYPL Jan 2025 80.000 call

OPR - OPR Delayed price. Currency in USD
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  • Yahoo Finance Video

    Phantom debt is having a 'seismic impact' on consumer credit

    US credit card debt hovers around $1.12 trillion for the first-quarter of 2024, according to the Federal Reserve Bank of New York, also finding 15% of Gen Z consumers to have maxed out their credit cards. Parallel to consumer trends, retailer Macy's (M) reported credit card delinquencies to have risen 8.9% in the last year while more "buy now, pay later (BNPL)" borrowers are late on their payments. Splitit CEO Nandan Sheth sits down with Brad Smith on Wealth! to discuss the "phantom debt" in credit markets perpetuated by BNPL plans. Phantom debt is traditionally characterized as old, forgotten, already defaulted, or debt that does not exist that collectors still seek repayment for, which in this case is specific to BNPL payments that aren't closely monitored by credit agencies. "We just did a survey and it noted that one-third of individuals that sign up for a 'buy now, pay later' plan do not know that they're originating a new loan. And as you know, those plans are not being reported to the credit bureaus, so it's hidden from the ecosystem," Sheth says. "You probably also noticed today... that the CFPB announced that they're going to regulate 'buy now, pay later' on par with credit cards, which tells you that we need more responsible lending in this space." For more expert insight and the latest market action, click here to watch this full episode of Wealth! This post was written by Luke Carberry Mogan.


    Affirm, PayPal, Square Stocks Are Dropping. A New CFPB Rule Could Be Why.

    A trio of payment stocks were trading lower Wednesday after the Consumer Financial Protection Bureau issued an interpretive rule that confirms “buy now, pay later” lenders are credit-card providers. Affirm Holdings dropped 6.7%, while PayPal Holdings slipped 3.2%, and Block fell 5.9% in afternoon trading. BNPL lenders “must provide consumers some key legal protections and rights that apply to conventional credit cards,” according to the CFPB.


    Apple's payments business remains largely underappreciated by investors

    Apple’s payment business is heavily underappreciated among investors, said Evercore ISI analysts in a note, citing positive feedback from their conversations with an expert who previously worked building payments products at Apple (NASDAQ:AAPL).